Institutional Interest in Shorting Ethereum Dries Up

Smart money is seemingly betting ethereum has bottomed as months of shorting by hedge funds has given way to plummeting Over the Counter (OTC) eth borrowing.

Some of our largest single originations to date were ETH loans in March and May to hedge funds. Over the second half of the year, these hedge funds began covering positions as they realized profits and the short interest in ETH was replaced by other alternative assets.�

So says genesis Global Trading, a registered crypto-broker that has lent about half a billion dollars worth of crypto to hedge funds and other entities.

the bottom is in for ETH,� says Ryan Selkis, who came to prominence in 2014 after revealing MT Gox was bankrupt at a time when MT Gox customer support was saying funds are safe.

plenty of short interest, but genesis lends to smart money,� Selkis said. Referring to eth shorts on Bitfinex being near all time high.

Unlike what may be unsophisticated traders, however, hedge funds are apparently no longer daring to short ethereum.